Brazil’s coffee exports to dip – will this support prices?

Brazil’s coffee export surge is to come to an end, undermined by disappointing production – but there are questions as to how much tighter supplies will support prices, the International Coffee Organization said.

The availability of coffee for shipment from Brazil, the top exporter, which hit a record in 2014-15 on an April-to-March basis, “is going to be significantly reduced over the next year”, the ICO said.

The forecast reflects the extent of dent to the country’s inventories from the 2014-15 rise in exports, of 12.4% to 32.7m bags, during a season of disappointing production, which was hit by persistent drought in the major growing state of Minas Gerais.